Brazil’s Petrobras Gets US$ 800-Million, 10-Year Loan from 3 Japanese Banks

    Brazilian Petrobras's Revap

    Brazilian Petrobras's Revap Brazilian government controlled oil and gas multinational Petrobras announced this Friday, December 12, that it made loans from three Japanese banks, for the value of 75 billion yen (around US$ 824 million), for investment in the Henrique Lage Refinery (Revap) in São José dos Campos, in the interior of the state of São Paulo.

    According to a press statement by the company, the program is being developed to increase the heavy oil processing capacity, improve the quality of diesel and gasoline and diversify the variety of products processed.

    In the press statement, Petrobras informed that the financing was granted by banks Sumitomo Mitsui Banking Corporation (SMBC), Mizuho Corporate Bank (Mizuho) and the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) and the payment span is ten years.

    "The financing is part of the company's program for fund collection to finance part of its investment projects with the support of traditionally-used long-term financing sources," according to the statement.

    Congress Doubts

    At the end of last month, the minister of Mines and Energy of Brazil, Edison Lobão, told reporters that a 2 billion Brazilian real (US$ 861 million) loan made by Petrobras from the Federal Savings Bank (CEF) was just a "regular loan" to cover operating costs.

    "This is not a problem for any company. It has already been done many times. Petrobras has already made loans abroad at other moments, and in Brazil too. Petrobras is just repeating something that it has always done," stated the minister while addressing the Senate regarding infrastructure.

    Brazilian senator Tasso Jereissati spoke about the loan in a plenary session in Congress. According to him, the company has "serious cash flow problems. The organization's monthly report to the Securities and Exchange Commission (SEC) shows that the loan was made on October 31 and the objective is to "strengthen the turning capital".

    According to Jereissati, the conditions negotiated by Petrobras with the CEF were as follows: grace period of 180 days for payment of the loan and single amortization at the end of the event; interest rate of 104% of the CDI Over; incidence of the financial transactions tax (IOF) and amortization and full payment of the loan made.

    ABr

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Crime and Impunity

    Many in Brazil felt impunity had taken a major hit back in 1992, when ...

    Brazil Reduces Key Interest Rate by 0.75% to 17.25%

    Brazilian and Latin American stocks headed lower, as investors continued to lock in some ...

    Learning to share

    Brazil has a history of going it alone. It happened with the world monopoly ...

    Brazilian public Internet provider

    Brazil’s Internet Surfer Population Reaches 39%

    In a surprising result for many, the number of Brazilians who have access to ...

    Brazil: Lula’s Star Still Got Some Shine Left

    The World Social Forum (WSF) in Caracas ended its first day with a protest ...

    Brazilian Vitor Meira

    Brazilian Muscle Back at the Indy 500 Track

    The first day of qualifications for 92nd running of the Indianapolis 500 failed to ...

    São Paulo, Brazil police

    Sí£o Paulo, Brazil, Gets Honorable Mention as World’s Robbery Capital

    A new United Nations report reveals that fear of crime is driving investment away ...

    Lula to Address the Poor in Brazil and the Rich in Davos

    Brazilian President Luiz Inácio Lula da Silva is going to land in Davos, Switzerland, ...

    And Now the World

    Increased liberalization of economic policy in Brazil is creating new threats and opportunities for ...